INHERITANCE Tax is paid on the estate of someone who has passed away. But Britons have been encouraged to take advantage of recent pauses to the system due to coronavirus.

Inheritance Tax (IHT) is currently levied at 40 percent, and is not popular within the UK, as it is often seen as a ‘death tax’. However, the recent coronavirus outbreak has affected how HMRC is currently dealing with the tax. HMRC recently suspended its Inheritance Tax investigations, a substantial move, as thousands of such investigations are opened each year.

Related articles

Inheritance Tax: The threshold currently stands at £325,000 (Image: Getty)

Steven Porter, Partner at Pinsent Masons, said: “It looks like taxpayers will get a short breather from HMRC for the next few weeks as the coronavirus crisis continues to unfold. This provides taxpayers with time to review their affairs and ensure they have not made any of the common mistakes which typically trigger inquiries.

“IHT rules are complex and it can be easy to make mistakes which can quickly lead to investigations. It is therefore important taxpayers are aware of the common pitfalls.”

A cross-party parliamentary group had, earlier in the year, called for simplification of Inheritance Tax rules and tightening of loopholes.

However, this did not make the March 2020 budget as announced by the Chancellor Rishi Sunak, and it is thought the plans were back-seated in favour of coronavirus assistance measures.